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{
    "id": 1157380,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1157380/?format=api",
    "text_counter": 128,
    "type": "speech",
    "speaker_name": "Sen. Omogeni",
    "speaker_title": "",
    "speaker": {
        "id": 13219,
        "legal_name": "Erick Okong'o Mogeni",
        "slug": "erick-okongo-mogeni"
    },
    "content": "As you know in this country, it is illegal and it is a traffic offence to drive a car without a third party cover. So, the cover is compulsory in our laws. However, the problem that we have been facing for many years is that most insurance companies are incorporated to collect premiums from very unsuspecting business people especially those in the matatu industry. These premiums are diverted. People do investments using the premiums and they leave the insurance companies insolvent. In that, when the claims are taken to courts and judgments are issued against the insured person, the insurance companies are not able to pay that compensation and satisfy the court decrees which is really unfortunate. I know people who have faced untold sufferings because of the inability of insurance companies to make good use of judgements that are issued by our courts of law. This is unfortunate because if you enter into a contract with a very innocent Kenyan, you receive their premiums and the contract stipulates that in the event of an accident, you compensate the victim, then I do not see the reason why the victim should not be compensated. This is one of the cases we are facing this afternoon from Sen. Mwaruma. Mr. Temporary, Speaker, often times, these companies are owned by very well connected Kenyans. The owners of AMACO are fairly rich people; highly connected politically in this country. They have used the money that has been paid by people who have taken insurance cover from these companies to become billionaires. However, they cannot compensate poor Kenyans like this particular claimant. It is really unfortunate. I hope the Committee that will address this matter will summon the Commissioner of Insurance, to appear before the House and tell us how they licensed companies like Africa Merchant Assurance Company (AMACO), to continue operating and issue insurance covers, if they are unable to settle claims. That person occupying that office of Commissioner of Insurance is supposed to protect public interest. Mr. Temporary Speaker, Sir, accidents happen. It could be you or me. You could knock down somebody tomorrow and three years down the line, you are faced with a court judgement running into several millions of shillings. That is what has happened to many Kenyans. The misfortune is that, when the insurance company is unable to pay, the victims will come after your personal assets. So, you will find auctioneers on your door, seeking to enforce those judgements, if the insurance company is unable to pay. I want to make a request to the Committee that will be tasked to look into this matter to summon the directors of AMACO Insurance Company. They should appear before that Committee and tell us whether they have the ability to continue running that company and whether the company’s books reflect that it is sound, so that we do not allow unsuspecting Kenyans to continue paying premiums to a company that is literally insolvent and cannot meet its obligations under the Insurance Act. I hope in pursuit of our mandates as legislators, people will act in the best interest of Kenyans. We should demand from the Commissioner of Insurance that companies which have been incorporated to give insurance covers but are unable to demonstrate the financial ability to meet the claims arising from accidents, should not be allowed to continue operating. We should close them up. Whether they have high connections"
}